Preliminary traffic figures for the month of July released by the Association of Asia Pacific Airlines (AAPA) showed air cargo demand has weakened.
Air freight markets softened in July reflecting a slowdown in world trade activity and weakening demand for Asian exports. Measured in freight ton kilometer (FTK) terms, air cargo demand registered a 2.2% decline compared to the same month last year. Offered freight capacity increased by 2.9%, leading to a 3.2 percentage point fall in the average international freight load factor to 62.1% for the month.
Mr. Herdman stated, “air cargo demand began the year quite strongly but has lost momentum as a result of a slowdown in global trade and weaker demand for Asian exports. For the January – July period, the region’s carriers reported a 3.5% increase in international air cargo demand, down from the 5.3% growth recorded in 2014.”
Mr. Herdman concluded, “Whilst demand for air travel remains robust, the weak cargo markets highlight some wider concerns about downside risks to the global macroeconomic outlook, including the effects of slower growth in China, exaggerated currency movements and stock market volatility, that could affect both business confidence and consumer demand going forward.”